Canadian Radio-television and Telecommunications Commission
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CRTC Communications Monitoring Report

2010

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6.0  International perspective

6.1 How Canada compares internationally

 

This pie chart shows Canada's total telecommunications revenues as a percentage of total Global telecommunications revenues in 2009. Canada: less than 3%; Global telecommunications revenues: $1,554 billion.

This section provides a statistical comparative perspective of Canada in the context of the international communications landscape, including a global view of pricing, revenues, and other metrics within the communications industry sectors of wireline, wireless, broadband, radio, and television services.

In 2009, revenues from Canadian telecommunications services represented less than 3% of global telecommunications revenues. Canada’s portion of North American telecommunications revenues was just under 10%.

Service pricing – individual services and bundled rates
Service providers from the telecommunications and broadcasting industries continued to offer their traditional core business services, as well as package communications services into various bundled offerings combining fixed-line voice telephony, mobile wireless services, broadband Internet access via both fixed and mobile technologies, and television and video services. Price comparisons between Canada and five selected foreign jurisdictions are contained in Table 6.1.1.

 

Table 6.1.1   International pricing (average price per month)

  Canada United States United Kingdom France Australia Japan
Wireline service            
Level 1 (low-volume use) 31 40 31 36 44 27
Level 2 (average use) 51 69 42 63 86 53
Level 3 (high-volume use) 61 78 58 73 95 83
Wireless service            
Level 1 (basic user) 33 40 21 30 19 24
Level 2 (average user) 52 61 33 78 36 44
Level 3 (premium user) 110 124 61 124 92 115
Broadband (fixed technology)            
Entry-level (˜1.5 Mbps, 2 GB/mon) 31 40 n/a n/a 35 40
Mid-level (1.5-9 Mbps, 10 GB/mon) 48 59 36 50 52 50
Premium (10-20 Mbps, 25 GB/mon) 62 75 41 65 74 72
Mobile Internet (3G technology)            
Speed ˜1.5Mbps, data usage 2GB/mon 54 73 22 52 34 76
Bundled services            
Wireline-Wireless-Broadband 134 165 93 162 132 137
Wireline-Broadband-Digital TV 118 165 98 108 131 127
Wireline-Wireless-Broadband-DTV 167 211 120 184 165 173

Note:Prices shown reflect local currencies converted to Canadian dollars and adjusted for purchasing power parity differences across the countries.

Source: Price comparison study conducted for the CRTC in April 2010 by Wall Communications Inc.; see Appendix 4 for a summary of the assumptions and methodologies used.

 

For fixed broadband, the market has been moving towards providing higher-speed Internet services, with the effect that fewer lower-speed/lower-usage alternatives are available. For instance, none of the service providers surveyed in the United Kingdom and France offered a Level 1 broadband service, while service providers such as Optus in Australia offered a single-speed service (20 Mbps) tied to usage levels. Once the monthly usage cap is reached, the service speed is throttled back to 256 kilobits per second. The average advertised speeds for the premium-level broadband offerings surveyed were as follows: Canada, 12.4 Mbps; the United States, 16.2 Mbps; the United Kingdom, 20 Mbps; France, 60 Mbps; Australia, 25 Mbps; and Japan, 18.5 Mbps.

Communications service revenues

Figure 6.1.1    Global telecommunications service revenues, 2009

This stacked clustered column chart depicts, by continent and country telecommunications revenues in billions for 2009: North America 377 (Canada and United States); Europe 499 (Rest of Europe, Italy, France, United Kingdom, and Germany); Asia/Pacific 419 (Rest of Asia/Pacific, China, Japan); and Otheer regions 258 (Africa/Middle East, Latin America).

 

 

Figure 6.1.2  Communications retail revenues per capita, 2008

This stacked clustered column chart depicts by country: wireline, wireless, broadband radio and pay TV for each of:  Canada 320, 396, 126, 56, 53; United States 271, 471, 102, 65,243; United Kingdom 268, 449, 95, 37, 126; France 260, 440, 106, 32, 120; Germany 268, 386, 87, 56, 71; Italy 240, 383, 91,33,78; and Japan 226, 507, 85,28,97.

Note:  Canadian dollars shown have been converted from pounds (£) based on the Bank of Canada 2009 year average currency exchange rate.

Source:  Ofcom International Communications Market Report (ICMR) 2009

 

Figure 6.1.3    Average monthly telecommunications retail revenues, 2008

This clustered column chart depicts, by country: average monthly mobile revenues per subscription, average monthly broadband revenue per connection, and average monthly telecommunications revenues per capita for each of Canada 53, 37, 70; United States 45, 35, 70; United Kingdom 30, 29, 68; France 42, 34, 67; Germany 26, 28, 62; Italy 20, 41, 59; Japan 52, 31, 68.

Note: Canadian dollars shown have been converted from pounds (£) based on the Bank of Canada 2009 year average currency exchange rate.

Source:  Ofcom ICMR 2009

 

Service penetration

Figure 6.1.4    International penetration (2009)

This clustered column chart depicts, by country: broadband connections per 100 households and mobile connections per 100 population for each of Canada:  78, 71; United States: 69, 93; United Kingdom: 71, 129; France: 76, 94; Germany: 63, 135; Italy: 54, 146; Japan: 67, 90; Australia: 64, 117.

 

Broadband service

Figure 6.1.5    Fixed broadband connections 2004-2009, year-over-year growth

This cluster of line chart depicts, by country fixed broadband connections growth for the years 2004-2009 for each of Canada 18%, 19%, 18%, 13%, 3%, 8%; United States 35%, 29%, 25%, 16%, 6%, 9%; United Kingdom 94%, 59%, 32%, 20%, 7%, 6%; France 79%, 45%, 34%, 22%, 7%, 12%; Germany 50%, 55%, 40%, 30%, 11%, 11%: Italy 87%, 49%, 23%, 15%, 16%, 8%: Japan 49%, 27%, 1%, 1%, 2%, 5%: Australia 122%, 80%, 37%, 27% 3%, 8%: and group average 47%, 35%, 22%, 16%, 6%, 8%.

 

Table 6.1.2 Broadband market share by connection type, 2009

  Cable DSL FTTx
Globally 20% 65% 12%
Canada 56% 44% <0.5%
United States 52% 38% 6%
United Kingdom 21% 79% <0.5%
France 5% 93% 2%
Germany 10% 90% <0.5%
Japan 14% 32% 54%

Source: Point Topic

 

Table 6.1.3 Average* advertised speeds (Mbps), by connection type

  Cable DSL FTTH
2009 25 14 77
2008 15 12 66
2007 11 9 77

*across OECD countries.

Source: OECD

 

Figure 6.1.6    Average measured broadband speeds, 2008 and 2009

This clustered column chart depicts the average measured broadband speeds for 2008 and 2009 and the percent growth for each of: Canada 3.8, 4.7, 25%; United States 3.9, 3.8, -3%; United Kingdom 3.5, 3.7 6%; France 3.2, 3.4, 7%; Germany 3.8, 3.9, 4%; Italy 3.0, 2.8, -6%; Japan 7.0, 7.6, 8%; and  Australia 2.5%, 2.2% -16%

 

Mobile broadband Internet service

Internet access at broadband speeds by wireless devices continues to gain popularity around the world. Computer laptops, notebooks, and netbooks can access mobile Internet service by means of a dongle, modem stick, or data card. Mobile handsets, especially the new generation of smartphones such as the iPhone, BlackBerry, Droid, and Google’s Nexus One, are the predominant devices using mobile broadband data services. A record 54 million smartphones, out of a global total of 337 million mobile phones, were sold in the fourth quarter of 2009, representing growth of 32% over the same period in 2008 (compared to 15% growth in the overall number of mobile handsets shipped worldwide in 2009).13 In Canada, Rogers Communications Inc. reported in early 2010 that 31% of its company’s wireless customer base subscribed to smartphones.14 Handsets are increasingly being designed with mobile Internet service in mind, with bigger screens and easier browsing interfaces. In 2007, 3G wireless networks, which enable mobile Internet access at broadband speeds, were available to 70% of the population in Europe and North America, with coverage in advanced markets such as Japan and South Korea near 99%. By 2008, Canada’s 3G availability extended to 91% of its population, slightly less than 3G reach in the United Kingdom and Italy, while ahead of coverage in the United States and France. Expansion of 3G networks to 4G through LTE technology will continue to facilitate mobile Internet use.15


Figure 6.1.7   Availability of mobile broadband (3G), 2007 and 2008

This clustered column chart depicts the availability of broadband for each of Canada 78%, 91%; United States 78%, 88%; United Kingdom 92%, 93%; France 70%, 77%; Germany 81%, 85%; Italy 78% 93%.

 

Table 6.1.4   Mobile broadband subscriptions, by country (millions)

  2004 2005 2006 2007 2008 2009 Growth
2008-2009
CAGR
2006-2009
Canada 0.0 0.1 0.2 0.5 1.5 2.6 71% 130%
United States 1.2 3.1 11.0 51.0 81.9 122.7 50% 123%
United Kingdom 2.6 4.6 7.8 12.5 20.7 23.4 13% 44%
France 0.1 1.3 4.2 8.5 14.6 17.8 22% 62%
Germany 0.3 2.4 4.5 12.4 17.9 26.0 45% 79%
Italy 3.5 10.3 23.6 24.5 29.1 31.6 9% 10%
Japan 10.9 29.2 63.2 83.3 96.1 106.2 11% 19%
Australia 0.5 0.7 3.0 6.8 11.3 14.3 26% 68%
Total 19.0 51.7 117.6 199.7 273.2 344.5 26% 43%

Source: ITU

Wireless mobile service

Table 6.1.5   Wireless industry metrics, 2009

 

Number of mobile subscribers (millions) Wireless penetration (subscribers/ population) Number of major providers Market share (by subscribers) of top two providers ARPU growth
(2008-2009)
Canada 23.8 70.9% 3 67% -3.0%
United States 285.0 92.8% 6 61% -0.7%
United Kingdom 78.4 128.5% 5 51% -5.8%
France 59.1 94.2% 3 77% -2.1%
Germany 110.3 134.5% 4 68% -7.1%
Italy 86.9 146.3% 4 70% 0.9%
Japan 114.1 89.5% 4 77% -9.0%
Australia 25.5 116.7% 3 74% -1.0%

Source: CRTC data collection, Merrill Lynch Global Wireless Matrix (GWM)

 

Figure 6.1.8  Wireless ARPU – monthly mobile revenues, including data share (2009)

This stacked column chart depicts the monthly mobile revenues per subscription and the percent related to data services for each of Canada $58, 20%; United States $58, 28%; United Kingdom $38, 32%: France $53, 21%; Germany $24, 29%; Italy $32, 32%; Japan $68, 45%; Australia $44, 35%.

Note:  Canadian dollars shown have been converted from local currencies based on Bank of Canada 2009 year average exchange rates.

Source: Merrill Lynch GWM

 

Figure 6.1.9    Prepaid share of mobile subscriptions, 2004 and 2009

This clustered column chart depicts prepaid share of total subscriptions for the years 2004 and 2009 for each of: Canada 22%, 20%; United States 10%, 18%; United Kingdom 68%, 61%; France 38%, 34%; Germany 51%, 57%; Italy 91%, 87%; Japan 3%, 4%; Australia 45%, 50%.

Source:  Merrill Lynch GWM

 

Broadcasting – Radio industry

Table 6.1.6   Radio industry metrics, 2008


 
Total radio industry revenues
($ billions)
Radio revenues per capita Number of licensed stations Listening minutes per day
per person

Canada

1.90 56 1,213

157

United States

19.64 65 14,253

159

United Kingdom

2.24 37 386

172

France

2.08 32 880

179

Germany

4.61 56 350

176

Italy

1.90 33 273

179

Japan

3.61 28 342

108

Australia

1.17 53 688

170

Note:  Canadian dollars shown have been converted based on the Bank of Canada 2009 year average currency exchange rates.

Source: Ofcom ICMR 2009; Australian Communications and Media Authority (ACMA) Communications report 2008-09

Broadcasting – Television industry

Table 6.1.7  Television industry metrics, 2008

  Total television industry revenues  ($ billions) Pay/subscription proportion of TV households (%) Pay TV revenues per capita
($)
Digital penetration of TV households (%) Viewing minutes per day per person
Canada 5.52 88 53 61 228
United States 144.78 87 243 76 277
United Kingdom 18.68 51 126 88 225
France 15.76 55 120 77 204
Germany 18.02 65 71 37 207
Italy 13.32 26 78 63 234
Japan 36.11 56 97 65 251
Australia n/a 29 n/a 47 178

Note: Canadian dollars shown have been converted based on the Bank of Canada 2009 year average currency exchange rates.

Source:  Ofcom ICMR 2009; ACMA Communications report 2008-09; industry data

 

Figure 6.1.10 Primary television platforms, 2009 (% of TV households)

Source:  TV International, 3 November 2009

 


[13] Source: Strategy Analytics, February 2010

[14] Source: Canadian Press Newswire, 17 February 2010

[15] Source: IDATE Digiworld Yearbook 2009, Ofcom ICMR 2009